2025 start-up talent and recruitment predictions: the trends shaping talent in tech

From the pandemic-driven adoption of remote working to the entry of a whole new generation into the workforce, the half-decade has, so far, seen change sweep across the world of people and talent at unprecedented scale and pace.

Shifting values and expectations have created new paradigms for talent acquisition, retention and management. While some of the changes that seemed set at the start of the decade have continued to mutate (reports of the office’s death, for example, seem to have been greatly exaggerated), others, such as an enhanced focus on the value of diversity across all levels of the workforce, have come to represent new, fixed standards. And it almost goes without saying that as the decade progresses, new frontiers are sure to open.

As we reach the midpoint of the 2020s, it feels like a good moment to reflect on some of these changes and ask which we expect to stick, while looking ahead to some of the emergent trends set to shape the world of work in 2025 – and beyond.

1. A greater emphasis on in-person collaboration

The COVID-19 pandemic turned offices into no-go-zones, but as its ripples have faded the question of where we work has become contentious.

While many start-ups have grown over the intervening years without physical space, many of the largest incumbents have continued to insist on the importance of in-office working. At the most extreme end lies Amazon, which made headlines last autumn for its announcement that all employees were expected back for a full five days per week in 2025.

While few businesses are likely to go to the same lengths, this year we’re expecting to see many more formalise an in-office requirement. Hybrid will remain king, but the ‘office is optional’ practice of the post-pandemic years will give way to an expectation that teams make regular in-person appearances.

While those founders who have successfully built their businesses around remote work first-and-only are unlikely to be looking to take on physical space, we expect an in-office mandate to become common practice in 2025.

2. Flexibility is here to stay

Last year in the UK, new legislation enshrined employee rights to request flexible working in law. Employees have a right to request amendments to their contract, from compressing the hours they work, to adopting a hybrid approach as to where they work.

This isn’t a global standard, but represents a direction of travel we expect to see followed over the coming year. Post-pandemic, the punch-in-punch-out approach looks ever more anachronistic, and some flexibility around when and where people do their work, according to their individual needs, is likely to stick. At the employee end, this may mean the chance to select days spent in the office, or the ability to flex hours to accommodate personal responsibilities. And there are benefits for employers too. A flexible approach can improve motivation, and unlocks access for a more diverse array of talent.

Still, for employees, the market isn’t as forgiving as it was. In an employer-driven market, where businesses need to operate leanly to thrive, we’re unlikely to see much growth in enhanced benefits. In this context, flexibility can be understood as a ‘free’ benefit – accommodating employees’ needs’ in this regard offers founders a great opportunity to stand out.

3. Teams will stay lean

The last couple of years have demanded that businesses rethink the size of their teams. Rather than understanding headcount as a metric for growth, the revised emphasis has been placed on lean, high performing teams – and this trend is set to continue in 2025.

In the face of sustained uncertainty, and with the lessons of the pandemic and years immediately following still clear, a primary focus on ensuring that teams are comprised of the right people, accomplishing their work effectively, represents a good fundamental – start-up founders take note.

4. Balance and wellbeing will become more important

Every year delivers a fresh wealth of talent. While today’s market is employer-driven, Generation Z’s introduction to the workforce has seen the emergence of a new set of values, with younger talent unwilling to set work before wellbeing.

This revised set of expectations has attracted much commentary (not all of it favourable, particularly from millennials), but it’s here to stay – and it’s no bad thing. Younger team members’ desire for a balanced worklife, or engagement with personal wellbeing, is having a positive impact on the overall workforce, and over the next 12 months older generations will need to continue to adapt – and maybe even learn to take a leaf out of Gen Z’s book.

5. Al experimentation will continue

There’s no question that this year, companies will continue to automate wherever possible as a means of both reducing cost and boosting productivity. In the talent space, many specific applications remain undefined, but we’re likely to see some emerge through experimentation. Still, 2025 is more likely to be the year of testing and learning than radically disruptive change.

6. Mission and values

Finally, after the turbulence of the last few years, it seems increasingly likely that top talent is going to be drawn more towards mission-driven companies.

While emerging generations may carry a new set of expectations, as discussed above, there’s also a growing consensus, amongst employees and customers alike, that the right things need to be done – and in the right way. Of course, traditional incentives will still carry weight. But more than ever, talented individuals are looking for an opportunity to make a difference, to apply their skills in an organisation that’s setting out to have a positive impact on society.

It’s never been a more exciting time to build a mission-driven business. Organisations like Pivotal Earth, Kita Earth and Metris Energy are working tirelessly to build meaningful solutions in the climate space. Pelago, Awell Health, Big Health, Perci Health and HelloSelf have developed solutions that promise to improve the health of millions. And those are just a few amongst the Octopus Ventures portfolio. In 2025, founders setting out to change the world will find themselves well supported by top talent. If you’re interested in working for one of our mission-driven portfolio companies, take a look at the job board here.

To learn more about how we support our portfolio companies, or read helpful insights, tips and guides for early-stage founders, on our website – and check back throughout the year, we’ll be publishing fresh resources throughout.